The Intelligent Way to Handle Singapore Tax: One Tax CM

 

Understanding Singapore's Tax Landscape

Singapore is renowned globally for its pro-business environment, and its tax system plays a significant role in this reputation. 

Characterized by low tax rates, a single-tier system, and various incentives, Singapore aims to attract foreign investment and foster economic growth. This guide provides an in-depth look at the key aspects of Singapore's tax landscape for both individuals and businesses.

Key Features of Singapore's Tax System

Singapore's tax framework is designed to be simple, efficient, and competitive. Here are some of its defining characteristics:

• Single-Tier Taxation: Profits are taxed at the corporate level, and dividends paid to shareholders are exempt from further taxation. This avoids double taxation on company profits.
• Territorial Basis of Taxation: Generally, only income sourced from or received in Singapore is taxed. Foreign-sourced income is typically not taxed unless received in Singapore. There are specific exemptions for foreign-sourced dividends, branch profits, and service income.
• No Capital Gains Tax: Singapore does not impose a tax on capital gains, including those derived from the sale of shares, properties, or other assets.
• Low Tax Rates: Both corporate and personal income tax rates are competitive, with the highest corporate tax rate at 17% and the highest personal income tax rate at 24%.
• Extensive Tax Treaties: Singapore has a wide network of Double Taxation Avoidance (DTA) treaties, which prevent income from being taxed twice in both Singapore and the treaty partner country.
• Simplified Filing Procedures: The Inland Revenue Authority of Singapore (IRAS) has streamlined tax filing processes to enhance convenience for taxpayers.

Types of Taxes in Singapore

Singapore levies several types of taxes to fund public services.

1. Corporate Income Tax (CIT)

Singapore imposes a flat corporate income tax rate of 17% on its chargeable income. Various tax exemptions and incentives are available, particularly for qualifying start-up companies, which can significantly reduce the effective tax rate.

Key Points:

• Rate: Flat 17%.
• Single-Tier System: Dividends are tax-exempt for shareholders.
• Exemptions & Incentives: Partial tax exemptions and start-up tax exemptions are available for qualifying companies (not applicable to property development and investment holding companies).

2. Personal Income Tax (PIT)

Personal income tax in Singapore operates on a progressive scale, meaning higher earners pay a higher percentage of their income in tax. Tax residency status significantly impacts the tax rates and available reliefs.

• Tax Residents: Generally, individuals who are Singapore citizens, permanent residents, or foreigners who have stayed or worked in Singapore for at least 183 days in a year (or continuously for three years, or 183 days over two calendar years for foreign workers) are considered tax residents. They are taxed at progressive rates ranging from 0% to 24%.
• Non-Tax Residents: Non-residents are taxed at a flat rate of 24%, except for employment income, which is taxed at the higher of a flat 15% or the progressive resident rates. Director's fees for non-residents are taxed at 24%.

Personal Income Tax Rates for Residents (Year of Assessment 2024 onwards):

Taxable Income (SGD)	Tax on Column 1 (SGD)	Percentage on Excess (%)
Over	Not Over
0	20,000	-
20,000	30,000	2.00
30,000	40,000	3.50
40,000	80,000	7.00
80,000	120,000	11.50
120,000	160,000	15.00
160,000	200,000	18.00
200,000	240,000	19.00
240,000	280,000	19.50
280,000	320,000	20.00
320,000	500,000	22.00
500,000	1,000,000	23.00
1,000,000		24.00

Note: For YA 2025 (income earned in 2024), all resident individuals will receive a tax rebate of 60% of tax payable, capped at S$200.

3. Goods and Services Tax (GST)

Commonly known as Value-Added Tax (VAT) in other countries, GST is an indirect tax levied on most goods and services consumed in Singapore.

• Rate: 9% as of 2025.
• Application: Applies to domestic consumption. Exports and international services are generally zero-rated.

4. Property Tax

Property tax is an asset tax levied on the ownership of immovable property, irrespective of whether the property is occupied or vacant. It is calculated based on the Annual Value (AV) of the property, which is the estimated gross annual rent if the property were to be rented out.

Property Tax Rates for Owner-Occupied Residential Properties (Effective 1 Jan 2025):

Annual Value (AV)	Property Tax Rate (%)
First $12,000	0
Next $28,000	4
Next $10,000	6
Next $25,000	10
Next $10,000	14
Next $15,000	20
Next $40,000	26
Above $140,000	32

Property Tax Rates for Non-Owner-Occupied Residential Properties (Effective 1 Jan 2025):

Annual Value (AV)	Property Tax Rate (%)
First $30,000	12
Next $15,000	20
Next $15,000	28
Above $60,000	36

5. Stamp Duty

Stamp duty is a tax on dutiable documents relating to immovable property and shares. There are generally three types:

• Buyer's Stamp Duty (BSD): Payable by the buyer on the purchase or acquisition of a property. Rates vary based on the value of the property and whether it's residential or non-residential. As of February 15, 2023, the top marginal rate for residential properties is 6%, and for non-residential properties, it's 5%.
• Additional Buyer's Stamp Duty (ABSD): An additional duty levied on top of BSD for certain residential property acquisitions, primarily for Singapore Permanent Residents buying their second property, and for foreigners and entities buying any residential property. ABSD rates were last adjusted on April 27, 2023, and can go as high as 65% for entities.
• Seller's Stamp Duty (SSD): Applicable to sellers who dispose of residential properties within a three-year holding period.

Other Taxes:

• Customs & Excise Duties: Levied on a limited number of imported items like petroleum products, motor vehicles, tobacco, and liquor. Singapore is largely a duty-free port for exports.
• Foreign Workers Levy: Charged for regulating the employment of foreign workers.
• Betting Taxes: Imposed on revenue from lottery and gambling activities.

Tax Incentives and Reliefs

Singapore offers a wide array of tax incentives to encourage business growth and individual well-being:

• Corporate Tax Incentives:

  • Pioneer Certificate Incentive: Tax exemption for approved manufacturing and high-tech services for 5-15 years.
  • Development and Expansion Incentive: Reduced tax rates (5%, 10%, or 15%) for new or expanded high-value-added projects.
  • Investment Allowance: Tax exemption on profits based on capital expenditure for qualifying projects.
  • Refundable Investment Credit: Up to 50% investment credit on qualifying expenditure for sizeable investments in key economic sectors.
  • Double Tax Deduction for Internationalisation: Allows companies to claim double deductions for eligible expenses related to overseas market expansion and investment development.
  • Enterprise Innovation Scheme (EIS): Provides 400% tax deductions/allowances or a cash payout for qualifying innovation activities like R&D, IP registration, and employee training.

• Personal Tax Reliefs:

  • Parenthood Tax Rebate: Rebate for parents with Singaporean children.
  • Qualifying Child Relief/Child Relief (Disability): Annual tax relief for dependent children.
  • Working Mother's Child Relief (WMCR): Encourages married, divorced, or widowed working mothers to remain in the workforce.
  • Grandparent Caregiver Relief: For working mothers whose parents/grandparents care for their Singaporean children.
  • Course Fees Relief: For approved courses related to employment or for professional development.
  • Earned Income Relief: For individuals with earned income.
  • Spouse Relief: For supporting a spouse.
  • Parent/Handicapped Parent Relief: For supporting parents or handicapped parents.
  • CPF Cash Top-up Relief: For voluntary cash top-ups to CPF accounts.
  • SRS Contributions: Contributions to the Supplementary Retirement Scheme (SRS) are eligible for tax relief.
  • Donations: Cash donations to approved Institutions of a Public Character (IPCs) are eligible for tax deductions.

Tax Compliance and Deadlines

Singapore boasts a robust and transparent tax system, making tax compliance a crucial aspect for individuals and businesses operating within its jurisdiction. Understanding the various deadlines and requirements is paramount to ensure smooth operations and avoid penalties. For individuals, the annual income tax filing deadline typically falls on April 15th for e-filing, and April 18th for paper filing, following the end of the tax year on December 31st. Employers are responsible for submitting their employees' income information to the Inland Revenue Authority of Singapore (IRAS) by March 1st each year.

For businesses, the tax landscape involves several key deadlines. Corporate income tax returns, known as Form C or Form C-S, are generally due by November 30th of the year following the financial year end. Companies are also required to file estimated chargeable income (ECI) within three months from their financial year-end. Goods and Services Tax (GST) registered businesses must file their GST returns either monthly or quarterly, depending on their taxable turnover, with the due date being one month from the end of the accounting period. Keeping abreast of these deadlines and maintaining accurate records are fundamental to effective tax compliance in Singapore's dynamic economic environment.

Singapore's Corporate Income Tax (CIT)

Singapore is renowned for its pro-business environment, and its corporate income tax (CIT) system plays a significant role in attracting and retaining businesses. With a flat corporate tax rate and various incentives, the Lion City aims to foster growth and innovation. This section delves into the key aspects of Singapore's CIT, including its rates, exemptions, rebates, and compliance requirements.

The Flat Rate Advantage

Singapore operates a single-tier corporate tax system, meaning that companies are taxed on their chargeable income (profits), and dividends distributed to shareholders are exempt from further taxation. This system, coupled with a competitive flat rate, contributes to Singapore's appeal as a global business hub.

Current Corporate Income Tax Rate (YA 2025 onwards):

The flat corporate income tax rate in Singapore is 17% on chargeable income. This applies to both local and foreign companies operating within the country.

Tax Exemptions and Rebates

Singapore offers various schemes to reduce the tax burden on companies, particularly new start-ups and small to medium enterprises (SMEs). These include tax exemptions and rebates.

1. Start-Up Tax Exemption (SUTE) Scheme

The SUTE scheme is designed to support newly incorporated companies in their first three Years of Assessment (YAs). To qualify, a company must be incorporated in Singapore, be a tax resident for the relevant YA, and have no more than 20 shareholders (all individuals, or at least one individual holding 10% or more of the issued ordinary shares). Property development and investment holding companies are generally not eligible for SUTE.

Chargeable Income (SGD)	Percentage Exempted From Tax	Amount Exempted From Tax (SGD)
First 100,000	75%	75,000
Next 100,000	50%	50,000
Total (Up to 200,000)		125,000

Note: This scheme applies for the first three consecutive YAs.

2. Partial Tax Exemption (PTE) Scheme

The PTE scheme is available to all companies, including those that do not qualify for SUTE. It provides a graded tax reduction on a company's normal chargeable income.

Chargeable Income (SGD)	Percentage Exempted From Tax	Amount Exempted From Tax (SGD)
First 10,000	75%	7,500
Next 190,000	50%	95,000
Total (Up to 200,000)		102,500

3. Corporate Income Tax (CIT) Rebate

Announced periodically, the CIT Rebate further reduces a company's tax payable. For Year of Assessment (YA) 2025, a 50% CIT rebate will be provided to all taxpaying companies, with a cap. Companies employing at least one local employee may also receive a minimum cash grant.

• YA 2025: 50% CIT Rebate, capped at SGD 40,000 (less CIT Rebate Cash Grant of SGD 2,000 where applicable).

Other Key Considerations

• Taxable Income: Corporate income tax is levied on profits from trade or business activities, investment income (dividends, interest, rental), royalties, and gains from the sale of property (subject to specific conditions).
• Foreign-Sourced Income: Generally, foreign-sourced income is taxable when received or deemed received in Singapore. However, exemptions may apply if the income has been taxed in the source country at a rate of at least 15%, among other conditions.
• Deductible Expenses: Expenses incurred wholly and exclusively in the production of income are generally tax-deductible.
• One-Tier Tax System: Dividends paid by Singapore-resident companies are tax-exempt in the shareholder's hands.
• Global Minimum Tax (BEPS 2.0): From financial years starting on or after January 1, 2025, Singapore will implement a 15% minimum effective tax rate for large multinational enterprise (MNE) groups, in line with the OECD's Pillar Two Global Anti-Base Erosion (GloBE) Rules. This includes a Domestic Top-up Tax (DTT) and a Multinational Enterprise Top-up Tax (MTT).

Compliance Requirements

Companies in Singapore have specific filing obligations to ensure compliance with CIT regulations:

1. Estimated Chargeable Income (ECI) Submission: Companies must file their ECI within three months from the end of their financial year. However, a waiver may be applicable for companies with annual revenue of SGD 5 million or lower and zero taxable income.
2. Annual Tax Return (Form C-S/Form C-S (Lite)/Form C): The annual tax return (Form C-S, C-S (Lite), or C) must be filed by November 30 of each Year of Assessment. Form C-S is a simplified version for smaller companies (annual revenue up to SGD 5 million) and does not require submission of financial reports.
3. Record Keeping: Companies must maintain comprehensive records of their financial transactions.
4. Tax Payment: Assessed tax is payable within one month after the Notice of Assessment (NOA) is issued by the Inland Revenue Authority of Singapore (IRAS).

Singapore's corporate income tax system is designed to be straightforward and competitive, offering various incentives to support businesses at different stages of their growth. Understanding the flat tax rate, available exemptions, and compliance requirements is crucial for companies operating in or looking to establish a presence in Singapore. Staying updated with the latest tax measures, such as the ongoing CIT rebate and the upcoming implementation of the global minimum tax, is essential for effective tax planning and compliance.

Singapore's Individual Income Tax

Singapore's individual income tax system is known for its progressive rates and a generally broad tax base, while also offering various reliefs to reduce the tax burden for residents. This section provides an overview of the key aspects of individual income tax in Singapore, including residency, tax rates, taxable income, reliefs, and filing deadlines.

Tax Residency in Singapore

An individual's tax residency status significantly impacts how their income is taxed in Singapore.

You are generally considered a tax resident if you are:

• A Singapore Citizen or Singapore Permanent Resident.
• A foreigner who has stayed or worked in Singapore for at least 183 days in the preceding calendar year.
• A foreigner who has stayed or worked in Singapore continuously for three consecutive years.
• A foreigner who has worked in Singapore for a continuous period straddling two calendar years, with a total period of stay of at least 183 days (excluding directors of a company, public entertainers, or professionals).

Tax Implications by Residency Status:

• Tax Residents: Taxed on all income earned in Singapore at progressive resident rates. Foreign-sourced income is generally tax-exempt unless received through a partnership in Singapore. They are eligible for various personal reliefs and deductions.
• Non-Tax Residents: Generally taxed at a flat rate of 24% on most income. However, employment income for non-residents is taxed at the higher of a flat rate of 15% or the progressive resident rates. Director's fees, consultation fees, and rental income are typically taxed at a flat rate of 24%. Non-residents are not entitled to personal reliefs.

How Individual Income Tax is Calculated

Individual income tax in Singapore is calculated on a preceding-year basis. This means income earned in the calendar year (January 1 to December 31) is assessed for the following Year of Assessment (YA).

The calculation generally follows these steps:

1. Determine Assessable Income: This includes all taxable income sources, such as employment income, trade/business/profession/vocation income, rental income, and certain other income.
2. Deduct Allowable Expenses and Donations: Expenses incurred wholly and exclusively in earning income (e.g., employment expenses, business expenses) can be deducted. Approved cash donations to Institutions of Public Character (IPCs) are eligible for a 250% tax deduction.
3. Subtract Personal Reliefs: Tax residents can claim various personal reliefs, subject to an overall cap of S$80,000 per Year of Assessment.
4. Arrive at Chargeable Income: This is the net income after all eligible deductions and reliefs.
5. Apply Progressive Tax Rates: The chargeable income is then taxed at the applicable progressive resident rates.
6. Subtract Tax Rebates: Any applicable tax rebates (e.g., Parenthood Tax Rebate, Personal Income Tax Rebate) are deducted from the tax payable.

Singapore Individual Income Tax Rates (Year of Assessment 2024 onwards)

Singapore employs a progressive tax system, meaning higher income levels are subject to higher tax rates. The top marginal personal income tax rate increased to 24% from the Year of Assessment 2024.

Here are the resident tax rates for the Year of Assessment 2024 onwards:

Taxable Income (SGD)	Tax on Column 1 (SGD)	Percentage on Excess (%)
First S$20,000	0	0%
Next S$10,000	0	2%
First S$30,000	200
Next S$10,000	200	3.5%
First S$40,000	550
Next S$40,000	550	7%
First S$80,000	3,350
Next S$40,000	3,350	11.5%
First S$120,000	7,950
Next S$40,000	7,950	15%
First S$160,000	13,950
Next S$40,000	13,950	18%
First S$200,000	21,150
Next S$40,000	21,150	19%
First S$240,000	28,750
Next S$40,000	28,750	19.5%
First S$280,000	36,550
Next S$40,000	36,550	20%
First S$320,000	44,550
Next S$180,000	44,550	22%
First S$500,000	84,150
Next S$500,000	84,150	23%
First S$1,000,000	199,150
In excess of S$1,000,000	199,150	24%

Note: For non-resident individuals, most income is taxed at a flat rate of 24%, with the exception of employment income (taxed at the higher of 15% or progressive resident rates) and certain other income types subject to reduced withholding rates.

Common Tax Reliefs for Residents

Singapore offers various tax reliefs to support individuals and encourage certain social and economic objectives. Some common reliefs include:

• Earned Income Relief: For individuals who are gainfully employed or self-employed.
• Parent Relief / Handicapped Parent Relief: For individuals supporting dependent parents, grandparents, or in-laws.
• Child Reliefs (Qualifying Child Relief / Child Relief (Disability) / Working Mother's Child Relief): For parents supporting children. The Working Mother's Child Relief has been adjusted to a fixed dollar amount for children born/adopted on or after January 1, 2024.
• CPF Relief: For contributions made to one's own or family members' Central Provident Fund (CPF) accounts.
• Life Insurance Relief: If CPF contributions are less than S$5,000, relief can be claimed for life insurance premiums paid.
• Course Fees Relief: Up to S$5,500 per year for fees paid for approved courses that upgrade professional skills or vocational qualifications.
• Donations: Deductions for cash donations to approved Institutions of Public Character (IPCs).
• Supplementary Retirement Scheme (SRS) Contributions: Voluntary contributions to an SRS account are deductible from taxable income.
• Foreign Domestic Worker Levy Relief: For eligible individuals who hire foreign domestic workers.
• NSman Relief: For national servicemen (self, spouse, and parents).

It's important to note that the total amount of personal income tax reliefs an individual can claim is capped at S$80,000 for each Year of Assessment.

Tax Filing Deadline

The annual income tax filing season for individuals in Singapore typically runs from March 1 to April 18.

• Paper filing deadline: April 15th
• E-filing deadline: April 18th

Many taxpayers may be under the No Filing Service (NFS) scheme if they only have pre-filled income (e.g., from an employer participating in the Auto-Inclusion Scheme). If you are selected for NFS, you are not required to file an Income Tax Return unless you need to amend pre-filled information or declare other sources of income.

Understanding Singapore's individual income tax system is crucial for both residents and non-residents to ensure compliance and optimize their tax position. It is always advisable to consult tax professional for personalized advice.

Singapore Goods and Services Tax (GST)

The Goods and Services Tax (GST) in Singapore, akin to Value Added Tax (VAT) in many other countries, is a broad-based consumption tax levied on almost all supplies of goods and services within Singapore, as well as on imported goods. Introduced on April 1, 1994, at an initial rate of 3%, GST plays a crucial role in Singapore's fiscal framework, contributing significantly to government revenue and enabling lower income tax rates.

How GST Works

GST is designed as a multi-stage tax, meaning it's applied at each stage of the supply chain, from manufacturer to retailer. However, the ultimate burden of the tax falls on the final consumer. GST-registered businesses charge GST (known as "output tax") on their sales and can claim back the GST they paid on their purchases and imports (known as "input tax"). The net difference between output tax and input tax is what the business remits to or claims back from the Inland Revenue Authority of Singapore (IRAS). This system ensures that GST is effectively levied only on the "value-add" at each stage, preventing double taxation.

Current GST Rate in Singapore

As of January 1, 2024, the standard GST rate in Singapore is 9%. This rate applies to most taxable goods and services.

Applicability and Registration

Businesses are generally required to register for GST if their annual taxable turnover exceeds S$1 million. This can be assessed retrospectively (if turnover exceeded S$1 million in the past 12 months) or prospectively (if expected to exceed S$1 million in the next 12 months). Businesses below this threshold can also choose to voluntarily register for GST.

GST is also levied on imported goods, collected by Singapore Customs. For imported services, different mechanisms like the Reverse Charge Mechanism (for B2B services) and the Overseas Vendor Registration (OVR) regime (for B2C services, including low-value goods) apply.

Types of Supplies Under GST

GST in Singapore classifies supplies into four main categories:

• Standard-Rated Supplies: These are goods and services where GST is charged at the prevailing rate (currently 9%). This includes most local sales and imported low-value goods.
• Zero-Rated Supplies: GST is charged at 0% for these supplies. While still considered taxable supplies, no tax is collected from the customer. This primarily applies to exported goods and international services.
• Exempt Supplies: No GST is charged on these supplies, and businesses cannot claim input tax incurred on purchases used to make these exempt supplies.
• Out-of-Scope Supplies: These are transactions that fall outside the purview of the GST Act, such as private transactions or sales of goods where the place of supply is outside Singapore.

GST Rates and Categories Table

Category of Supply	GST Rate	Description	Examples
Standard-Rated	9%	Most goods and services supplied within Singapore.	Local retail sales, restaurant services, professional services, imported low-value goods.
Zero-Rated	0%	Exports of goods and provision of international services.	Laptops shipped to overseas customers, air tickets from Singapore to Thailand.
Exempt	No GST	Specific goods and services where GST is not charged, and input tax cannot be claimed.	Financial services (e.g., currency exchange, loans, sale of shares), sale and lease of unfurnished residential properties, import and local supply of investment precious metals (IPM).
Out-of-Scope	No GST	Transactions falling outside the scope of the GST Act.	Sales of goods delivered from one overseas location to another, private transactions not in the course of business.

History of GST Rates in Singapore

The GST rate has seen gradual increases since its inception, reflecting Singapore's evolving economic needs and fiscal strategies.

Period	GST Rate
1 April 1994 to 31 December 2002	3%
1 January 2003 to 31 December 2003	4%
1 January 2004 to 30 June 2007	5%
1 July 2007 to 31 December 2022	7%
1 January 2023 to 31 December 2023	8%
From 1 January 2024	9%

Compliance and Key Considerations

GST-registered businesses have several responsibilities, including:

• Charging and accounting for GST at the correct rate.
• Issuing proper tax invoices.
• Keeping accurate records of all transactions.
• Filing GST returns (typically quarterly) with IRAS within one month from the end of each accounting period.
• Displaying prices inclusive of GST.

The Singapore government also implements various schemes to help businesses and households manage GST, such as the Permanent GST Voucher Scheme for lower-income households and specific industry schemes like the Major Exporter Scheme (MES) and Zero GST Warehouse Scheme. Understanding the nuances of Singapore's GST system is essential for both businesses and consumers to ensure compliance and effective financial planning.

Singapore's Property Tax

Singapore's property tax system is a key component of its robust fiscal framework, designed to promote homeownership and ensure a fair contribution from property owners. Understanding these taxes, particularly the distinction between owner-occupied and non-owner-occupied properties, and the implications for foreigners, is crucial for anyone engaging with the Singaporean property market.

What is Property Tax?

Property tax in Singapore is an annual tax levied on property ownership, regardless of whether the property is occupied, vacant, or rented out. It is calculated based on the property's Annual Value (AV), which is the estimated gross annual rent the property could fetch if it were rented out, excluding furniture, furnishings, and maintenance fees. The Inland Revenue Authority of Singapore (IRAS) determines¹ the AV.

Key Factors Affecting Property Tax

The amount of property tax payable in Singapore is primarily determined by three factors:

1. Annual Value (AV) of the property: A higher AV generally means a higher tax.
2. Occupancy Status: Whether the property is owner-occupied or non-owner-occupied (e.g., rented out or vacant). Owner-occupied properties enjoy significantly lower tax rates.
3. Applicable Property Tax Rate: These rates are progressive for residential properties, increasing with the AV, and are different for owner-occupied and non-owner-occupied properties. Non-residential properties have a flat tax rate.

Property Tax Rates in Singapore (Effective 1 January 2025)

The Singapore government has made adjustments to the property tax rates, particularly for owner-occupied residential properties, to account for rising Annual Values and to provide relief to homeowners.

1. Owner-Occupied Residential Properties

Owner-occupied residential properties benefit from concessionary tax rates, encouraging homeownership. In 2025, a one-off property tax rebate will also be provided (20% for HDB flats, and 15% capped at $1,000 for private residential properties), further reducing the payable amount.

Annual Value (AV)	Property Tax Rate (Effective 1 Jan 2025)
First $12,000	0%
Next $28,000	4%
Next $10,000	6%
Next $25,000	10%
Next $10,000	14%
Next $15,000	20%
Next $40,000	26%
Above $140,000	32%2

2. Non-Owner-Occupied Residential Properties

These properties, typically held for investment or rental income, are subject to higher tax rates.

Annual Value (AV)	Property Tax Rate (Effective 1 Jan 2024 - remains for 2025)
First $30,000	12%
Next $15,000	20%
Next $15,000	28%
Above $60,000	36%

3. Non-Residential Properties (Commercial and Industrial)

Commercial and industrial properties are taxed at a flat rate.

Property Type	Property Tax Rate
Commercial and Industrial Properties	10%

Additional Buyer's Stamp Duty (ABSD)

Beyond the annual property tax, buyers of residential properties in Singapore may also be subject to Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD). While BSD applies to all property purchases, ABSD is a significant additional tax levied on top of BSD, particularly impacting foreigners and those acquiring multiple residential properties.

Here are the ABSD rates (effective from April 27, 2023):

Purchaser Profile	ABSD Rate
Singapore Citizen (SC) buying first property	0%
SC buying second property	20%
SC buying third and subsequent property	30%
Singapore Permanent Resident (SPR) buying first property	5%
SPR buying second property	30%
SPR buying third and subsequent property3	35%
Foreigner buying any residential property	60%
Entities (including companies) buying any residential property	65%
Housing Developers (with conditions for remission)	35% (+ additional 5% non-remittable)
Trustee buying any residential property	65%

Note: Citizens from certain countries (Liechtenstein, Iceland, Norway, Switzerland, and the USA) may be exempt from ABSD due to Free Trade Agreements.

Property Tax Rebates and Exemptions

Singapore offers certain property tax reliefs and rebates:

• Owner-Occupied Residential Properties: As mentioned, a one-off property tax rebate will be provided in 2025. This aims to ease the burden on homeowners.
• Vacant Land Remission: If you've purchased an empty plot of land to construct a new home for owner-occupation, you may apply for remission.
• Properties for Public Worship or Charitable Purposes: Properties owned and used by registered charities for charitable, public religious worship, or educational purposes may be exempt from property tax.

How to Calculate and Pay Property Tax

Property tax is paid annually. The IRAS issues property tax bills from December onwards for the following year, with payment typically due by January 31st of the new year. You can calculate your estimated property tax using interactive calculators available on the IRAS website. Payment methods include GIRO (for monthly installments), PayNow QR, and AXS.

Singapore's property tax system is dynamic, with ongoing adjustments to reflect market conditions and policy objectives. While it aims to promote responsible homeownership, particularly for its citizens, it also implements measures like ABSD to moderate demand and curb speculative buying, especially from foreign investors. Understanding these taxes is fundamental for anyone looking to own property in this vibrant city-state.

The Role of Professional Tax Advisory & Compliance

Singapore, renowned for its pro-business environment and attractive tax regime, nonetheless presents a dynamic and intricate tax landscape. For businesses operating within or looking to establish a presence in the city-state, professional tax advisory and compliance are not just beneficial but absolutely essential for long-term success and sustainability. Navigating the evolving regulations, leveraging incentives, and mitigating risks all hinge on expert guidance.

Why Professional Tax Advisory and Compliance Matter in Singapore

Singapore's tax system, while generally favorable with a flat corporate tax rate of 17% and a single-tier taxation system (dividends are tax-exempt for shareholders), is characterized by its sophistication and constant evolution. This includes various tax incentives, double taxation agreements (DTAs), Goods and Services Tax (GST), withholding tax obligations, and transfer pricing regulations. Without a deep understanding of these nuances, businesses risk non-compliance, financial penalties, and missed opportunities.

Here's a breakdown of the key reasons why professional tax advisory and compliance are crucial:

• Staying Updated with Dynamic Tax Regulations: Singapore's tax laws are continually updated. Professional tax advisors stay abreast of these changes, ensuring businesses remain compliant with the latest requirements and can adapt their strategies accordingly.
• Minimizing Tax Liabilities and Maximizing Savings: Expert advisors can identify and leverage various tax incentives, exemptions, and deductions offered by the Inland Revenue Authority of Singapore (IRAS). These include the Start-up Tax Exemption Scheme, Partial Tax Exemption Scheme, and industry-specific incentives, which can significantly reduce a company's effective tax rate and improve cash flow.
• Ensuring Accuracy and Timely Filings: Late or inaccurate tax filings can lead to penalties and unnecessary scrutiny from tax authorities. Tax consultants meticulously review financial records, prepare accurate tax returns (e.g., Form C/C-S, ECI, GST returns), and ensure timely submission, alleviating compliance-related stress.
• Navigating Cross-Border Tax Complexities: For businesses with international operations, managing cross-border tax obligations is a significant challenge. Professional advisors provide guidance on withholding tax, double taxation agreements, and transfer pricing regulations, helping businesses optimize their global tax position and avoid double taxation.
• Strategic Tax Planning: Beyond mere compliance, tax advisors assist in strategic tax planning that aligns with a company's overall business objectives. This can involve optimizing tax structures for mergers and acquisitions, expansion, or restructuring, leading to enhanced cash flow and profitability.
• Mitigating Risks and Handling Audits: Professional representation is invaluable during tax audits or disputes with IRAS. Tax consultants can verify assessments, lodge objections, respond to queries, and navigate investigations smoothly, protecting the company's financial interests and reputation.
• Time and Resource Savings: Outsourcing complex tax filings and compliance tasks frees up valuable internal resources, allowing business owners and their teams to focus on core operations and strategic growth initiatives.

Key Aspects of Professional Tax Advisory & Compliance Services

Professional tax advisory firms in Singapore offer a comprehensive suite of services to address various tax-related needs. These generally include:

Service Category	Description
Corporate Tax Advisory	Guidance on corporate income tax regulations, tax implications of business decisions, optimization of tax structures, and utilization of tax incentives (e.g., Start-up Tax Exemption, Partial Tax Exemption).
Tax Compliance	Preparation and submission of corporate income tax returns (Form C/C-S, ECI), Goods and Services Tax (GST) returns, withholding tax filings, and other statutory reports to IRAS. Ensuring all filings are accurate and submitted on time.
GST Advisory & Filing	Assistance with GST registration/exemption, quarterly GST computation and filing, classification of goods and services, and advice on GST regulations, especially for businesses exceeding the S$1 million taxable turnover threshold or those involved in international services and imported low-value goods.
International Tax	Advising on cross-border transactions, double taxation agreements (DTAs), transfer pricing policies, and international tax planning to minimize global tax liabilities and ensure compliance across multiple jurisdictions. This also includes applying for Certificates of Residence (COR).
Tax Audit & Dispute	Representation during IRAS audits and investigations, assistance in preparing responses to queries, lodging objections to assessments, and managing appeals.
Personal Tax Advisory	While primarily focused on businesses, many firms also offer personal tax services for directors, expatriates, and high-net-worth individuals, including income tax return preparation, identifying reliefs and deductions, and advice on remuneration packages and tax residency.
Strategic Tax Planning	Proactive identification of tax-saving opportunities, development of tax-efficient business strategies, and aligning tax considerations with long-term business goals, including for mergers, acquisitions, and expansions.

Choosing the Right Professional Tax Advisor

Selecting a competent tax advisor in Singapore is a critical decision. Businesses should consider the following factors:

• Expertise and Experience: Look for advisors with extensive experience in Singapore's tax laws and regulations, particularly within your industry.
• Qualifications and Accreditations: Verify that the advisor and their firm are reputable and hold relevant professional certifications.
• Comprehensive Services: Ensure they offer a full suite of services that cater to your current and future tax needs.
• Communication and Client Service: Choose an advisor who communicates clearly, responds promptly, and offers proactive updates on tax changes and deadlines.
• Transparency in Fees: Discuss fees upfront and ensure there are no hidden costs.
• Reputation and References: Seek recommendations and check online reviews or testimonials from previous clients.

Professional Tax Advisory & Compliance: A Strategic Investment for Budget Savings

Engaging professional tax advisory and compliance services in Singapore is not merely an overhead but a strategic investment that can significantly save your budget in the long run. By proactively identifying and leveraging various tax incentives, exemptions, and deductions tailored to your business, experts can legally minimize your tax liabilities, directly improving your cash flow and profitability. 

Furthermore, accurate and timely filings orchestrated by professionals prevent costly penalties, late payment interest, and the significant financial drain associated with tax audits and disputes, ensuring your budget remains secure from unforeseen expenditures. In essence, while there's an initial outlay for these services, the avoided costs, optimized tax structures, and maximized savings ultimately translate into a substantial net positive for your financial bottom line.

Key takeaway

In Singapore's competitive and regulated business environment, professional tax advisory and compliance are indispensable. They empower businesses to navigate complexities, capitalize on tax-saving opportunities, avoid costly penalties, and ultimately foster sustainable growth. By partnering with experienced and reputable tax consultants, companies can focus on their core operations with confidence, knowing their tax obligations are handled efficiently and strategically.

One Tax CM: Your Trusted Tax & Compliance Partner in Singapore

Singapore's dynamic business environment offers immense opportunities, but it also comes with a comprehensive regulatory landscape. For businesses, navigating the intricacies of tax and corporate compliance can be a significant challenge, diverting valuable resources from core operations. This is where a reliable and expert partner like One Tax CM steps in, offering comprehensive solutions to ensure seamless compliance and foster business growth.

One Tax CM: Your Partner in Business Growth and Compliance

One Tax CM (Singapore) Pte Ltd stands as a dedicated corporate service provider, offering comprehensive solutions designed to empower businesses in navigating Singapore's dynamic regulatory and financial landscape. Since its establishment in 2014, the company has built a reputation for providing tailored expertise in areas such as company incorporation, corporate secretarial services, accounting, and tax compliance. Recognizing Singapore's unique tax environment, which features a low flat corporate tax rate and a single-tier system, One Tax CM specializes in helping clients optimize their financial strategies while ensuring full adherence to local regulations, including the Singapore Financial Reporting Standards (FRS) and the evolving BEPS 2.0 framework. 

Their client-centric approach is underpinned by a team of experienced professionals who leverage cutting-edge technology to streamline processes, offer proactive insights, and ensure transparency and accuracy in financial reporting. Beyond standard services, One Tax CM is also committed to community engagement, notably through initiatives like their E-Filing Tax Assistance program, which supports individuals with their income tax e-filing. By simplifying complex financial and compliance matters, One Tax CM allows businesses to focus on their core operations and achieve sustainable growth.

Comprehensive Services for Business Success

One Tax CM provides a holistic suite of services designed to address the full spectrum of a business's compliance and financial requirements. This integrated approach allows businesses to focus on their strategic objectives, knowing that their administrative and regulatory obligations are in capable hands.

Key Services Offered by One Tax CM:

Service Category	Description	Key Benefits
Company Incorporation	End-to-end support for registering a new company in Singapore, including choosing the right business structure and fulfilling ACRA requirements.	Smooth and hassle-free business setup; ensures compliance from day one.
Corporate Secretarial Services	Maintaining statutory registers, filing annual returns with ACRA, and ensuring adherence to company law.	Fulfills mandatory legal obligations; avoids penalties for non-compliance.
Accounting Services	Comprehensive bookkeeping, preparation of financial statements (unaudited or audited), management reports, and setting up on accounting software like Xero.	Accurate financial records; timely insights for decision-making; adherence to Singapore Financial Reporting Standards (SFRS).
Tax Services	Corporate income tax filing, Goods and Services Tax (GST) compliance, withholding tax, and strategic tax planning to optimize tax benefits.	Minimizes tax liabilities; ensures timely and accurate tax submissions to IRAS; capitalizes on available tax incentives.
Work Pass Application	Assistance with applying for various work passes (e.g., Employment Pass, S Pass) for foreign talent.	Streamlines the process of hiring international employees; ensures compliance with immigration regulations.
Advisory Services	Expert guidance on various financial and business matters, supporting growth and strategic decision-making.	Access to experienced professionals for informed business strategies.

Navigating Singapore's Regulatory Landscape

Singapore's regulatory bodies, such as the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS),¹ have stringent requirements for businesses.

Key Compliance Aspects in Singapore:

• Corporate Income Tax (CIT): Singapore imposes a flat corporate income tax rate of 17% on chargeable income. Businesses are required to file Estimated Chargeable Income (ECI) within three months of their financial year-end and annual tax returns (Form C or Form C-S).
• Goods and Services Tax (GST): Companies with an annual taxable turnover exceeding S$1 million must register for GST and file regular submissions, typically quarterly.
• ACRA Annual Filing: Companies must hold Annual General Meetings (AGMs) and file annual returns with ACRA within specific deadlines. Financial statements must comply with SFRS and, as of 2025, must be submitted in XBRL format for most companies.
• Ultimate Beneficial Owner (UBO) Register: Businesses are required to maintain an accurate and up-to-date register of their UBOs to enhance transparency and combat financial crimes.

One Tax CM's expertise in these areas is crucial for businesses looking to thrive in Singapore. They help clients navigate these complex requirements, ensuring all deadlines are met and all regulations are adhered to, thereby mitigating the risk of penalties and legal issues.

Why Choose One Tax CM?

Clients commend One Tax CM for their efficiency, proactive support, and tailored solutions. Testimonials highlight their seamless handling of company incorporation and corporate account opening, along with their responsive and comprehensive guidance. The firm's commitment to continuous training ensures their team stays current with industry trends and regulatory changes, providing clients with the most accurate and up-to-date advice.

In a business environment where compliance is paramount, partnering with a knowledgeable and dedicated firm like One Tax CM allows businesses to confidently focus on innovation and growth, secure in the knowledge that their tax and compliance needs are expertly managed.

Grow Your Business with One Tax CM

Strategic Partnership for Sustainable Success

In today's competitive business landscape, sustainable growth hinges not only on innovative products or services but also on robust financial management and unwavering regulatory compliance. This is precisely where a strategic partnership with One Tax CM becomes invaluable. One Tax CM transcends the traditional role of an accounting firm, positioning itself as a comprehensive growth enabler for businesses of all sizes. By entrusting your accounting, corporate secretarial, and tax compliance needs to their seasoned experts, you unlock critical resources and insights previously consumed by administrative burdens. Imagine the time and energy you can redirect towards market expansion, product development, or talent acquisition when the complexities of tax filings, financial reporting, and corporate governance are meticulously handled. 

One Tax CM's proactive approach, combined with their in-depth understanding of local and international tax frameworks—including the evolving BEPS 2.0 standards—ensures that your business not only remains compliant but also identifies opportunities for tax optimization and efficient capital allocation. Their commitment to leveraging technology for streamlined processes further empowers you with real-time financial data, enabling agile decision-making and strategic planning. Partnering with One Tax CM isn't just about outsourcing tasks; it's about gaining a dedicated financial ally committed to fostering your business's enduring success and accelerating its growth trajectory.